HYDERABAD
The Bureau of Energy Efficiency (BEE), an agency established by the Ministry of Power to create awareness and disseminate information on energy efficiency and conservation as also help develop strategies and policies towards that end, has launched the Carbon Credit Trading Scheme to address the issue of greenhouse gas (GHG) emissions and mitigation of climate change in the country.
The agency has appealed to all stakeholders to actively participate and provide unwavering support for the successful implementation of the scheme. According to BEE authorities, the scheme is aimed at facilitating trading of carbon credits and incentivise and reward entities that reduce, remove or avoid greenhouse gas emissions.
The implementation of the scheme, came into force on June 28, underscores the urgent need to combat climate change and recognise the pivotal role of market-based mechanisms in achieving emission reduction targets. The Carbon Credit Trading Scheme assigns a value, known as a carbon credit, to each tonne of carbon dioxide equivalent (tCO2e) reduced or avoided. These credits could be bought, sold and traded within the country’s carbon market framework.
Director General of BEE Abhay Bakre has stated that introduction of the Carbon Credit Trading Scheme is a historic and flagship programme of the Union Government and it signifies a critical step towards mitigating climate change. “By incentivising emission reduction efforts and establishing a market for carbon credits, the scheme encourages active participation from entities across various sectors in greenhouse gas reduction activities. The initiative will not only help India meet its emission reduction commitments but also create tremendous economic opportunities and promote sustainable development”, he explained.
The BEE has appealed to proactive States such as Andhra Pradesh, Telangana, Karnataka, Kerala, Rajasthan, Gujarat, Assam, Haryana, Maharashtra, Punjab and others to play a key role in ensuring the success of the scheme. Recognising that such active participation would foster industrialisation, create employment opportunities and accelerate economic development, the BEE authorities said the country could pave the way for a greener and more sustainable future by embracing the Carbon Credit Trading Scheme.
The Centre has constituted National Steering Committee headed by Secretary in the MoP to oversee and govern functioning of the carbon market. It comprises representatives from various Ministries, emissions and climate change experts and members from the energy sector. As the administrator, the BEE will identify sectors with potential for emission reductions, develop targets for obligated entities under the compliance mechanism and issue carbon credit certificates based on recommendations from the National Steering Committee.
Further, the committee will also establish market stability mechanisms, accredit carbon verification agencies and maintain the necessary IT infrastructure and database essential for the market’s seamless functioning.
Published - July 10, 2023 07:56 am IST
